Ge Long Hui·2025-08-19 07:32Core Viewpoint - The report from Dongwu Securities indicates that Huayou Cobalt's net profit attributable to shareholders for the first half of 2025 reached 2.71 billion yuan, representing a year-on-year increase of 62.3%, with the second quarter net profit at 1.46 billion yuan, showing a quarter-on-quarter increase of 27% and a year-on-year increase of 16.5% [1] Financial Performance - For the first half of 2025, Huayou Cobalt's net profit contributions from Huayue and Huafei totaled 1.26 billion yuan [1] - The cost of MHP nickel is reported at 12,000 USD per ton, while the average nickel price in Q2 was 15,500 USD per ton, leading to an estimated profit of 3,500 USD per ton [1] - The company is expected to contribute 3 to 3.5 billion yuan in nickel profits for the year 2025 [1] Market Outlook - Nickel prices are currently at a low point, suggesting significant price elasticity in the future [1] - The increase in cobalt prices since Q2 is expected to enhance performance, with a potential second wave of price increases in the latter half of the year [1] - The shipment of ternary cathodes saw a substantial quarter-on-quarter increase, with an annual growth forecast of over 90% [1] Valuation - Given the current nickel price situation, the company is assigned a target price of 53 yuan based on a 15x PE ratio for the year 2025, maintaining a "buy" rating [1]